1. Field of the Invention
The present invention relates generally to conducting commercial transactions, and more particularly, to conducting auctions.
2. Description of Related Art
Because the present invention facilitates electronic communications between vendors and purchasers, the Internet is increasingly being used to conduct “electronic commerce.” The Internet comprises a vast number of computers and computer networks that are interconnected through communication channels. Electronic commerce refers generally to commercial transactions that are at least partially conducted using the computer systems of the parties to the transactions. As an example, a purchaser can use a personal computer to connect via the Internet to a vendor's computer. The purchaser can then interact with the vendor's computer to conduct the transaction. Although many of the commercial transactions that are performed today could be performed via electronic commerce, the acceptance and widespread use of electronic commerce depends, in large part, upon the ease-of-use of conducting such electronic commerce. If electronic commerce can be easily conducted, then even the novice computer user may choose to engage in electronic commerce. Which is why it important that techniques be developed to facilitate conducting electronic commerce.
The World Wide Web portion of the Internet is especially conducive to conducting electronic commerce. It is a fact that many web servers have been developed through which vendors can advertise and sell product. The products can include items (e.g., software, music) that are delivered electronically to the purchaser over the Internet and items (e.g., printed mater) that are delivered through conventional distribution channels (e.g., a common carrier). More generally, an item is any product, server, or exchangeable entity of any type. A server computer system may provide an electronic version of a catalog that lists the items that are available. A user, who is a potential purchaser, may browse through the catalog using a browser and select various items that are to be purchased. When the user has completed selecting the items to be purchased, the server computer system may then prompt the user for information to complete the ordering of the items. This purchaser-specific order information may include the purchasers name, the purchasers credit card number, billing and a shipping address for the order. The server computer system then typically confirms the order by sending a confirming web page to the client computer system and schedules shipment of the items.
The World Wide Web is also being used to conduct other types of commercial transactions. For example, some server computer systems have been developed to support the conducting of auctions electronically. To conduct an auction electronically, the seller of an item provides a definition of the auction via web pages to a server computer system. The definition includes a description of the item, a time to open the bidding, an auction time period, and optionally a opening bid. The server computer system then conducts the auction during the specified time period. Potential buyers can search the server computer system for an auction of interest. When such an auction is found, the potential buyer can view the bidding history for the auction and enter a bid for the item. When the auction is closed, the server computer system notifies the winning bidder and the seller (e.g., via electronic mail) so that they can complete the transaction.
Some auctions have been developed that allows the winning bidder to receive a discount from the winning bid amount when a certain discount criteria is met where the discount criteria is met when the winning bidder was the first bidder to place the bid at the auction. U.S. Pat. No. 6,606,608 teaches the art wherein the bidder who places the first bid will receive a discount (e.g., 10%) if that bidder is ultimately successful in winning the auction. The auction system tracks whether each auction is subject to a “first bidder discount” and whether the winning bidder was the first bidder. The offering of a first bidder discount may encourage bidders to start bidding early in the duration of an auction and to continue bidding to ensure that they receive the discount. The art further teaches that many different discount criteria can be used to encourage bidders to bid at an auction. For example, the auction system may allow successive bidders to be eligible for successively smaller discounts. That is, the first bidder may receive a 10% discount, and the second bidder may receive a 5% discount. Also, the discount criteria can be independent of the order in which the bidders placed their first bids. For example, a winning bidder who places a bid that is at least 5% larger than the second highest bid may receive a 10% discount. Such a discount criteria may encourage bidders to bid at least 5% more than the current highest bid.
U.S. Pat. No. 6,606,608 teaches the art that, to be eligible for a discount, the discount is contingent upon a bidder placing the first bid for a item offered for sale by auction that the bidder bid on and that the bidder must further qualify as the winning bidder. The discount is specified to be at least a minimum or maximum discount wherein such discount is still contingent upon a bidder placing the first bid for a item offered for sale by auction that the bidder bid on and that the bidder must further qualify as the winning bidder. The discount is not independent of the order for a bid to be placed or independent of being the winning bidder without placing a bid in a designated order. This prior art patent is incorporated herein by reference.
Whereas, this present Invention teaches the art of registering as a bidder, pay a bid fee and register an opening bid with a discount that is displayed before a bid is made by the bidder wherein such discount is not contingent on or to another condition, to be submitted to the auction within a designated time wherein the registration of a designated number of bidders that paid a bid fee become equivalent to the seller asking price for the item offered by the seller to be sold by auction, after which time the auction is opened and (i) the auction computer system submits all registered bids for that auction to that auction and (ii) the computer system accepts for that auction all opening bids submitted to that auction and (iii) the computer system declares the auction is open for competitive bidding. The present Invention discount is not contingent on the order when a bid is registered or submitted or accepted by the auction. The discount applies to all bids and therefore the discount is not limited to the winning bid.
It would be highly desirable, therefore, to improve upon the conventional method and means to promote and conduct certain auctions, auction venues, auction marketplace for sellers, bidders and buyers and auction system.